“We are talking to two leading banks in India to launch the blockchain-platform early next year,” Rahul Banerjee informed on Sunday after getting approval as a world Recognised Market Operator (RMO) from the Monetary Authority of Singapore (MAS).
The RMO permits BondbloX Bond Exchange (BBX), the world’s first blockchain-based bond change, to commerce globally a variety of fixed-income securities to the mass markets.
“BondEvalue officially graduated from the MAS’ regulatory sandbox on October 1, 2020. The move means that BondEvalue has successfully concluded proof of technology and business model,” defined Banerjee, 45-year-old son of an air drive officer who attained early training from Amritsar’s Rajasansi city.
The MAS’ approval will assist to speed up engagements with potential companions, stated Banerjee who goals to re-boost frequent man’s saving schemes in international markets.
“As a child, I remember that we had a Godrej steel almirah, where the locker would have the Kisan Vikas Patras, along with other valuables, birth certificates, etc,” stated Banerjee, remembering his childhood days. “Blockchain is today’s financial Godrej steel almirah.”
“My dream is to enable every Indian to buy bonds from their mobile phones the way they order food. One rupee, one bond,” he stated referring to the notional worth of the bond.
“Our vision of extending bond trading from Wall Street to main street is becoming a reality. We are committed to helping investors trade bonds in a transparent manner,” stated Rajaram Kannan, a former banker and co-founder of BBX-BondEvalue.
Rajaram and Rahul have been classmates within the founding batch of the Indian School of Business.
“The aim is to make it one of the most attractive schemes for the common man,” he careworn, demystifying the notion that bonds are rich-man play.
“Going forward, we forsee active trading in rupee-denominated bonds including Masala bonds. The onshore Indian market with new issuance of USD 100 billion corporate bond market is huge,” Banerjee famous.
He sees BondEvalue serving to within the higher integration of the Indian bond markets with international markets. Resident Indians should buy US greenback bonds on the BondEvalue Exchange via the Liberalised Remittance Scheme which permits particular person to remit as much as USD 200,000 a 12 months from India. Individuals will come by way of the Indian banks that develop into members on the change.
Banerjee stated the bond market in its current type is “broken” as a result of its over-the-counter buying and selling lacks transparency. Exchange buying and selling is the one answer. Only when inventory buying and selling moved to exchanges within the 1990s that actual progress and retail participation surged, he added.
There have been many earlier makes an attempt by regulators and market contributors to ‘democratise’ bond investing however BondEvalue was in a position to make it occur largely due to three elements – advances in expertise, the Singapore regulator approval, and the expertise and experience of his group at BondEvalue.
Today, bonds are well-liked with people in international locations just like the US, Japan and Singapore. Technology can create a second wave of permitting people to spend money on bonds, much like what the Kisan Vikas Patra’s did many years in the past, added the veteran bankers.